International Trade Terms
EXW – Ex Works
(Delivery from Works):
- Responsibilities:
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- Seller: The seller is responsible for preparing the goods and delivering them at their location (factory or warehouse).
- Buyer: The buyer bears all costs of transportation, insurance, and customs duties from the factory location to the final destination.
- Delivery point: Factory or warehouse location.
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FCA – Free Carrier
(Carrier Delivery):
- Responsibilities:
- Seller: The seller is responsible for preparing the goods and delivering them to the buyer’s chosen carrier at their location (factory or warehouse).
- Buyer: The buyer bears all costs of transportation, insurance, and customs duties from the factory location to the final destination, starting from the moment the goods are handed over to the carrier.
- Delivery point: Factory or warehouse location.
- Risk transfer: The risk transfers from the seller to the buyer upon delivery of the goods to the carrier.
CPT – Carriage Paid To
(Carriage Paid To):
- Responsibilities:
- Seller: The seller is responsible for preparing the goods and delivering them to the buyer’s chosen carrier, and paying the transportation costs to a specified destination (usually a port or terminal) in the buyer’s country.
- Buyer: The buyer bears the costs of insurance and customs duties from the specified delivery point to the final destination, as well as the costs of unloading the goods.
- Delivery point: Specified destination (port or terminal) in the buyer’s country.
- Risk transfer: The risk transfers from the seller to the buyer upon delivery of the goods to the carrier.
CIP – Carriage And Insurance Paid To
(Carriage And Insurance Paid To):
- Responsibilities:
- Seller: The seller is responsible for preparing the goods and delivering them to the buyer’s chosen carrier, and paying the transportation and insurance costs to a specified destination (usually a port or terminal) in the buyer’s country.
- Buyer: The buyer bears the costs of customs duties from the specified delivery point to the final destination, as well as the costs of unloading the goods.
- Delivery point: Specified destination (port or terminal) in the buyer’s country.
- Risk transfer: The risk transfers from the seller to the buyer upon delivery of the goods to the carrier.
DAP – Delivered At Place
(Delivered At Place):
- Responsibilities:
- Seller: The seller is responsible for preparing the goods and delivering them to a specified destination (buyer’s address) in the buyer’s country, including the costs of transportation, insurance, and customs duties.
- Delivery point: Buyer’s address in the buyer’s country.
- Risk transfer: The risk transfers from the seller to the buyer upon delivery of the goods at the buyer’s address, but unlike DPU, the seller does not bear the cost of unloading the goods.
DPU – Delivered at Place Unloaded
(Delivered at Place Unloaded):
- Responsibilities:
- Seller: The seller is responsible for preparing the goods and delivering them to a specified destination (buyer’s address) in the buyer’s country, including the costs of transportation, insurance, customs duties, and unloading the goods.
- Delivery point: Buyer’s address in the buyer’s country.
- Risk transfer: The risk transfers from the seller to the buyer upon unloading the goods at the buyer’s address.
FAS – Free Alongside Ship
(Free Alongside Ship):
- Responsibilities:
- Seller: The seller is responsible for preparing the goods and delivering them onto the wharf or alongside the buyer’s chosen ship at the port.
- Buyer: The buyer bears all costs of transportation, insurance, customs duties, and loading the goods onto the ship from the wharf, as well as the risk from that point.
- Delivery point: Wharf or alongside the ship.
- Risk transfer: The risk transfers from the seller to the buyer upon placing the goods on the wharf or alongside the ship.
DDP – Delivered Duty Paid
(Delivered Duty Paid):
- Responsibilities:
- Seller: The seller bears all costs of transportation, insurance, customs duties, and delivers the goods to the buyer’s address in the buyer’s country, including unloading the goods.
- Delivery point: Buyer’s address in the buyer’s country.
- Risk transfer: The risk transfers from the seller to the buyer upon delivery of the goods at the buyer’s address.
CFR – Cost and Freight
(Cost and Freight):
- Responsibilities:
- Seller: The seller is responsible for preparing the goods, loading them onto the buyer’s chosen ship, and paying the transportation costs to a specified destination (usually a port) in the buyer’s country.
- Buyer: The buyer bears the costs of insurance and customs duties from the specified delivery point to the final destination, as well as the costs of unloading the goods.
- Delivery point: Specified destination (port) in the buyer’s country.
- Risk transfer: The risk transfers from the seller to the buyer upon loading the goods onto the ship.
FOB – Free On Board
(Free On Board):
- Responsibilities:
- Seller: The seller is responsible for preparing the goods and loading them onto the buyer’s chosen ship.
- Buyer: The buyer bears all costs of transportation, insurance, customs duties from the moment the goods are loaded onto the ship, as well as the risk from that point.
- Delivery point: On board the ship.
- Risk transfer: The risk transfers from the seller to the buyer upon loading the goods onto the ship.
CIF – Cost, Insurance and Freight
(Cost, Insurance and Freight):
- Responsibilities:
- Seller: The seller is responsible for preparing the goods, loading them onto the buyer’s chosen ship, paying the transportation and insurance costs to a specified destination (usually a port) in the buyer’s country, and obtaining the necessary export documents.
- Buyer: The buyer bears the costs of customs duties from the specified delivery point to the final destination, as well as the costs of unloading the goods.
- Delivery point: Specified destination (port) in the buyer’s country.
- Risk transfer: The risk transfers from the seller to the buyer upon loading the goods onto the ship.
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